Abstract In this paper, we study the dynamics of initial public offerings (IPOs) by examining the tradeoff between an entrepreneur’s private benefits, which are lost whenever the firm is publicly traded, versus the advantages from diversification. We characterize the timing dimension of the...

We study the dynamics of initial public offerings (IPOs) by examining the tradeoff between an entrepreneur's private benefits, which are lost whenever the firm is publicly traded, and the gains from diversification. We characterize the timing dimension of the decision to go public and its impact...

We consider risk-return and valuation in an economy segmented by the differential personal taxation of debt and equity assets. In equilibrium there exist two SMLs, one for debt securities and one for equity securities, which relate market (i.e., post-corporate tax, pre-personal tax) returns to...

We study the dynamics of initial public offerings (IPOs) by examining the tradeoff between an entrepreneur's private benefits, which are lost whenever the firm is publicly traded, and the gains from diversification. We characterize the timing dimension of the decision to go public and its impact...

The objective of this paper is to reexamine the effects of the timing of information releases on security prices. We extend Ross (1989) by allowing the timing of information releases to affect the martingale probabilities. We show that if the early release of information is expected to resolve...